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February 1, 2005

GICS 50: VZ & SBC Tuesday, February 1, 2005 12:11:18

Two high-quality stocks in the Telecom sector (GICS 50) can be bought here. If you are somewhat concerned,. Then why not write puts.

For VZ, why not write the July 32.50 puts for $0.90 premium. If you can buy this stock for $31.60, should it be put to you at $32.50, it's a steal. The short puts will likely be available to be bought back at a nickel or dime anyway.

Or for SBC, why not write the July 22.50 puts for $0.75 premium. I doubt you'll have this stock put to you at $22.50, making your cost $21.75, so you'll likely end up buying back the short put at a nickel or dime.


BCara@BillCara.com

Posted by Posted by Bill Cara on February 1, 2005 12:12:11 PM | Category: 50 Telecom Services , U.S. Dow 30

Discourse

Ahhh great recent entries Bill.
Interesting calls.

I was short T until SBC made their announcement and screwed it up. All the long distance companies are facing some tough competition from cellular and VoIP, and T was the worst of the pack. Not sure what SBC plans to get out of buying them. The name and the backbone circuits I guess. Maybe they can put some value on it.

All that aside, working on trying to get fills on those puts...

(I've got a fresh bottle a glass cleaner here when you're ready to shine up those sunglasses again - lol)

Enso

Posted by: enso [TypeKey Profile Page] at February 2, 2005 6:56 PM [link]